Ming-Chang Huang, Min-Ping Kang and Jui-Kun Chiang
This paper aims to build and empirically test a multilevel framework integrating transaction cost economics and a resource-based view into a value co-creation ecosystem…
Abstract
Purpose
This paper aims to build and empirically test a multilevel framework integrating transaction cost economics and a resource-based view into a value co-creation ecosystem perspective to explain the chain- and firm-level effects of transaction-specific investments (TSIs) on supplier performance.
Design/methodology/approach
This paper investigates cross-level network effects using survey data from the List of Taiwanese Central Satellite Production Systems. A total of 34 buyers (hub firms) and 106 suppliers (satellite firms) from 34 supply chains responded to the survey.
Findings
Findings confirm that individual firms’ TSIs can foster co-specificity at the supply chain level, thereby improving supply chain integration (SCI). SCI can have a positive cross-level moderating effect on the TSI–performance relationship.
Research limitations/implications
These two key concepts, value co-creation and co-specificity, extend the theoretical application of transaction cost theory and the resource-based view to cross-level study by contributing to the research on the TSI–performance relationship.
Practical implications
This study’s framework is a counter to the buyer–supplier–supplier relationships in which each actor who may have different goals can create value jointly and share benefits from their TSIs.
Social implications
Owing to high co-specificity, being embedded in a well-integrated supply chain can be a threat when the environment is turbulent; for losing strategic flexibility, co-specificity and embeddedness may result in a collective adaptation concern. High degrees of SCI may slow the reaction to environmental turbulence for both buyers and suppliers.
Originality/value
Individual firms’ TSIs can foster co-specificity at the supply chain level, subsequently enhancing SCI. An integrated supply chain can be a collective asset that facilitates value co-creation. Individual firms can benefit from the sharing of collective value. SCI can also increase switching costs, thus reducing the likelihood of individual firm engaging in opportunistic behavior and cost safeguarding.
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Keywords
Wein-Hong Chen, Min-Ping Kang and Bella Butler
Penrose’s argument regarding the managerial constraint on continual expansion over two consecutive periods is termed the “Penrose effect,” a relatively less investigated premise…
Abstract
Purpose
Penrose’s argument regarding the managerial constraint on continual expansion over two consecutive periods is termed the “Penrose effect,” a relatively less investigated premise in Penrose’s growth theory. The purpose of this paper is to empirically re-examine the Penrose effect from the perspective of upper echelons theory and investigated how top management team (TMT) composition influences the continual growth of a firm.
Design/methodology/approach
This study empirically tested the hypotheses based on a sample of listed manufacturing firms operating in Taiwan, a newly industrialized economy in the Asia–Pacific region. Moderated hierarchical regression analyses were applied to test hypotheses.
Findings
The empirical results suggest that low TMT diversity (in terms of educational, functional and team tenure diversity) is likely to engender a situation in which the Penrose effect might occur. Additionally, the results indicate that the proportion of functional executives plays a significant role in influencing the growth trend over two consecutive periods and may soften the impact of the Penrose effect.
Practical implications
This paper suggests that appropriate structuring of TMTs and appropriate management of their members’ backgrounds and team tenure diversity can help firms overcome the Penrose effect and grow continually. Furthermore, the proportion of functional executives in a TMT is influential.
Originality/value
This paper uniquely contributes to the theoretical and empirical development of Penrose’s growth theory, upper echelons theory and resource-based view concerning managerial resources.
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Farooq Ahmed, M. Muzamil Naqshbandi, Sharan Kaur and Boon Kwee Ng
The purpose of this paper is to investigate the relationship of leadership styles (paternalistic, authentic and democratic) with relationship-based employee governance and open…
Abstract
Purpose
The purpose of this paper is to investigate the relationship of leadership styles (paternalistic, authentic and democratic) with relationship-based employee governance and open service innovation.
Design/methodology/approach
Data were collected using a structured questionnaire from 422 medical professionals working in the Malaysian healthcare sector.
Findings
Results of several statistical analyses showed that the three leadership styles positively influence relationship-based employee governance and open service innovation. Results also confirmed the mediating role of relationship-based employee governance in the relationships between the three leadership styles and open service innovation.
Research limitations/implications
This research used a cross-sectional study design; use of a longitudinal research design in future research can provide a better interpretation of the underlying causality. A policy insight can be drawn from this research to generate awareness about effective leadership styles and the role of relationship-based employee governance in the successful implementation of open service innovation in the Malaysian healthcare sector.
Originality/value
This paper contributes to leadership, open innovation, and organizational governance literature by highlighting how leadership styles affect relationship-based employee governance and open innovation. It also offers policy insights to practitioners in the Malaysian healthcare sector on how to enhance open service innovation outcomes.